Insurers asked to make provisions for IL&FS, Reliance Capital defaults
Last month, the Reserve Bank of India had asked banks to disclose their exposure to IL&FS and its group entities as the NCLAT verdict was pending
- May 3, 2019,
- Updated May 3, 2019 9:37 PM IST
Like banks, insurance companies will also have to make full provisions for their defaulting exposure to cash-strapped IL&FS group and the two Reliance Capital arms which were downgraded recently, the insurance regulator Irdai said Friday.
The regulator said the insurers with exposure to Anil Ambani-run Reliance Capital's subsidiaries--Reliance Home Finance and Reliance Commercial Finance--will have to make provisions for debt of these companies which were downgraded by Care Ratings last month.
Thursday, the National Company Law Appellate Tribunal (NCLAT) had allowed banks to declare their defaulting accounts of IL&FS (Infrastructure Leasing & Financial Services) and its group companies as NPAs.
It can be noted that last month, the Reserve Bank had asked banks to disclose their exposure to IL&FS and its group entities as the NCLAT verdict was pending.
How Anil Ambani will weather another debt crisis; will brother Mukesh help again?
Like banks, insurance companies will also have to make full provisions for their defaulting exposure to cash-strapped IL&FS group and the two Reliance Capital arms which were downgraded recently, the insurance regulator Irdai said Friday.
The regulator said the insurers with exposure to Anil Ambani-run Reliance Capital's subsidiaries--Reliance Home Finance and Reliance Commercial Finance--will have to make provisions for debt of these companies which were downgraded by Care Ratings last month.
Thursday, the National Company Law Appellate Tribunal (NCLAT) had allowed banks to declare their defaulting accounts of IL&FS (Infrastructure Leasing & Financial Services) and its group companies as NPAs.
It can be noted that last month, the Reserve Bank had asked banks to disclose their exposure to IL&FS and its group entities as the NCLAT verdict was pending.
How Anil Ambani will weather another debt crisis; will brother Mukesh help again?